Chapter 1 Executive Summary
Background
Introduction
Overview of the Report
Scope and Methodology
Scope of the Market
Methodology
Strategic Trends in the Affluent Consumer Market
Research Suggests Affluent May Feel the Recession More
Average Income of Super-Affluent Subject to More Ups and Downs
Pessimism Reigns among Super-Affluent Consumers
Affluent More Afflicted by Feelings of Financial Insecurity
Even the Super-Affluent Lose Their Mojo
Spending Plans Reined In
Dividend Income Down, Unemployment Compensation Up
Increase in Household Net Worth for First Time in Two Years Fosters Optimism
Wall Street Bonuses Expected to Rebound in 2009
Optimism Starts to Return among Affluent Consumers
More Affluent Shoppers in High-End Stores
Taking Advantage of Affluent Consumer Market Opportunities
The New Normal Challenges Marketers
Affluent Buyers Search for Value
Marketers Combat "Luxury Shame"
"Stealth Sales" On the Increase
Some Marketers Focus on Protecting the Brand
Discount High Fashion Websites Thrive
Affluent Consumers Continue to Offer Most Attractive Opportunities
The Demographics of Affluence
Population of Affluent Consumers Tops 61 Million
Affluent Consumers Disproportionately Non-Hispanic White
Education Differentiates Affluent Consumers
Few Retirees among Affluent Consumer Population
Multiple Earners Common in Affluent Households
Marriage More Common
Affluent Households Are Larger
Northeast Has the Most Super-Affluent
Affluent More Likely to Congregate in Urban Centers
Looking Ahead: The Affluent Consumer Market in 2010 and Beyond
Number of Affluent Households Tops 25 Million
Affluent Generate More than Half of U.S. Household Income
Affluent Consumer Market Will Grow 23% by 2014
How Affluent Consumers Manage Their Money
Affluent Lose Appetite for Risk
Super-Affluent Show Increasing Interest in Getting Financial Information
Choice of Banking Institutions Differs across Income Lines
Frequent Credit Card Use a Hallmark of Affluence
Even Affluent Carry Balances on Credit Cards
Debit Cards Used Frequently
Paying Bills Online Popular among Affluent
Affluent Taxpayers Look to CPAs
How Affluent Consumers Spend Their Money
Affluent Consumers Wield Ever-Increasing Influence
Huge Spending Gap between Affluent and Non-Affluent Consumers
Expenditure Patterns Reflect Differences in Available Choices
Highly Affluent Consumers Cut Expenditures in Great Recession
Affluent Shoppers Attuned to Brand Names
Affluent Consumers Are Careful Shoppers
Incentive Offers Appeal to Affluent Consumers
Super-Affluent Are Big Online Spenders
Affluent Consumers Turn to Catalogs More Often
Keeping up with Fashion More Important to Affluent Consumers
Taking Care of Themselves: Health and Well-Being in the Affluent Consumer Market
Exercise Has High Priority
Fewer Wimps among the Affluent
Affluent Healthier than Other Americans
Visits to Doctors More Common
Trust in Physicians Lower
Super-Affluent Will Pay More for Medications
Healthy Eating Important to Affluent Consumers
Losing Weight a High Priority for Affluent Consumers
Affluent Consumers and Their Homes and Cars
Home Décor of Interest to the Affluent
Affluent Lead Way in Home Improvement Market
Affluent Big Spenders in Household Furnishings Stores
Organic Food a Must for Many Super-Affluent Chefs
New Cars More Likely to Be Found in Affluent Owners' Garages
Foreign Cars Highly Rated
Multiple Vehicles More Common
One in Four Affluent Consumers Plans to Buy New Vehicle in Next Year
How Affluent Consumers Spend Their Leisure Time
Affluent Consumers More Active in Their Spare Time
Audio Books Favored by Super-Affluent Readers
Affluent Households Filled with Electronics Gear
Affluent Prove Tough Customers for Wireless Service Providers
Affluent Heavy Users of Internet
Live Entertainment Events Attract More Affluent Consumers
Affluent Consumer Segment Includes More Frequent Moviegoers
Super-Affluent Consumers Are Frequent Travelers
Interest in Cruise Ship Vacations Rebounds among Top Tiers of Affluent Consumers
Affluent Consumers and the Media
Newspapers Maintain Hold on Super-Affluent
Affluent Viewers less Likely to Turn to TV for Information
Premium Cable a Fixture in Affluent Homes
TV More Popular among Affluent Men than Women
Radio Important Information Source for Affluent Men
Internet Changes Media Habits of Affluent
Cellphone Important Media Platform for Affluent
Affluent Consumers Pay Attention to Out-of-Home Ads
Product Placement Effective Way to Reach Super-Affluent Consumers

Section I Overview of the Market

Chapter 2 Strategic Trends in the Affluent Consumer Market
Affluent Consumers in the Great Recession
Affluent Consumer Population Peaked in 2007
Table 2-1: Growth in the Population of Affluent Consumers by Selected Time Periods, 2005-2009
Table 2-2: Number of Affluent Households Identified by Experian Simmons National Consumer Study, Selected Time Periods 2005-2009
Survey Details Global Decline in Population of the Very Rich
Wealthy in the U.S. Share the Pain of Their Counterparts around the World
Research Suggests Affluent May Feel the Recession More
Average Income of Super-Affluent Subject to More Ups and Downs
Figure 2-1: Average Household Income of Super-Affluent Consumers, 2000-2008
Table 2-3: Mean Household Income 2000-2008, Super-Affluent vs. All Other Consumers
Affluent More Likely to Claim to Be Worse Off Financially
Table 2-4: Financial Status of Affluent and Non-Affluent Consumers, Fall 2008 vs. Spring 2009
Pessimism Reigns among Super-Affluent Consumers
Table 2-5: Economic Outlook of Affluent and Non-Affluent Consumers, Fall 2008 vs. Spring 2009
Affluent More Afflicted by Feelings of Financial Insecurity
Table 2-6: Percent of Affluent and Non-Affluent Consumers Who Feel Financially Secure by Selected Time Periods, 2005-2009
Even the Super-Affluent Lose Their Mojo
Table 2-7: Percent of Affluent and Non-Affluent Consumers Expressing Low Level of Consumer Confidence by Selected Time Periods, 2005-2009
Table 2-8: Percent of Affluent and Non-Affluent Consumers Expressing High Level of Consumer Confidence by Selected Time Periods, 2005-2009
Figure 2-2: Percent Expressing Low Consumer Confidence, Super-Affluent vs. Non-Affluent Consumers
Figure 2-3: Percent Expressing High Consumer Confidence, Super-Affluent vs. Non-Affluent Consumers
Spending Plans Reined In
Table 2-9: Spending Plans of Affluent vs. Other Consumers, Fall 2008 vs. Spring 2009
Affluent More Concerned about Their Financial Future in the Event of Job Loss
Affluent Consumers Surprisingly Hard Hit by Job Losses and Business Failures
Table 2-10: Percent of Affluent and Non-Affluent Consumers Reporting They Lost Job, Were Laid Off or Went Out of Business by Selected Time Periods, 2005-2009
Dividend Income Down, Unemployment Compensation Up
Figure 2-4: Average Income from Interest, Dividends, Rental Income and Other Property Income, Highly and Super-Affluent Consumer Units, 2005-2008
Figure 2-5: Aggregate Income from Unemployment Compensation and Veterans Benefits, Highly and Super-Affluent Consumer Units, 2005-2008
Affluent Living in Trophy Houses Feel Pinch
Figure 2-6: Average Market Value of Homes Owned by Highly and Super- Affluent Consumers by Selected Periods, 2004-2008
Figure 2-7: Number of Affluent Consumers Living in Houses Worth $1 Million or More by Selected Periods, 2005-2009
A Glimmer of Hope in the Affluent Consumer Market
Affluent Consumer Market Starts to Stabilize
Increase in Household Net Worth for First Time in Two Years Fosters Optimism
Wall Street Bonuses Expected to Rebound in 2009
Optimism Starts to Return among Affluent Consumers
More Affluent Shoppers in High-End Stores
Table 2-11: Number of Highly and Super-Affluent Consumers Shopping in Selected High-End Retail Stores in Last Three Months, 2007-2009

Chapter 3 Taking Advantage of Affluent Consumer Market Opportunities
How Marketers Are Adapting to Change in the Affluent Consumer Market
The New Normal Challenges Marketers in Affluent Consumer Market
Affluent Buyers Search for Value
Table 3-1: Changes in Shopping Behavior of Super-Affluent Consumers by Selected Time Periods, 2005-2009
Table 3-2: Number of Highly and Super-Affluent Consumers Shopping at Nordstrom and Nordstrom Rack, April 2008-December 2008 vs. November 2008-June 2009
Figure 3-1: Percent of Super-Affluent Consumers Shopping at Costco in Last Three Months by Selected Time Periods, 2008-2009
Marketers Combat "Luxury Shame"
"Stealth Sales" On the Increase
Some Marketers Focus on Protecting the Brand
Luxury Marketers Move Online
Discount High Fashion Websites Thrive
Customization Used as Strategy to Lure Affluent Buyers
Selected Opportunities in the Affluent Consumer Market
Affluent Consumers Continue to Offer Most Attractive Opportunities
Table 3-3: Average Household Income, Affluent vs. Other Households
Table 3-4: Average Annual Expenditures, Affluent vs. Other Consumer Units
Affluent Provide Bulk of Shoppers for Many Retailers
Table 3-5: Selected Affluent Consumer Market Opportunities Related to Shopping in Stores in Last Three Months
Table 3-6: Selected Affluent Consumer Market Opportunities Related to Catalog Shopping
Affluent Consumers Biggest Spenders Online
Table 3-7: Selected Affluent Consumer Market Opportunities Related to Online Shopping
Affluent Consumers Prime Targets for Consumer Electronics Marketers
Table 3-8: Selected Affluent Consumer Market Opportunities Related to Ownership of Cellphones
Table 3-9: Selected Affluent Consumer Market Opportunities Related to Consumer Electronics
Leisure Pursuits of Affluent Provide Multiple Opportunities
Table 3-10: Selected Affluent Consumer Market Opportunities Related to Leisure Activities
Affluent Consumers Vital to Travel Industry
Table 3-11: Selected Affluent Consumer Market Opportunities Related to Travel
Affluent Critical Element in Home Improvement Market
Table 3-12: Selected Affluent Consumer Market Opportunities Related to Home Improvements and Furnishings
Affluent Hold Key to Automotive Market
Table 3-13: Selected Affluent Consumer Market Opportunities Related to Automotive Vehicles
Affluent Main Driver of Financial Services
Table 3-14: Selected Affluent Consumer Market Opportunities Related to Financial Services
Table 3-15: Selected Affluent Consumer Market Opportunities Related to Investments Owned

Chapter 4: The Demographics of Affluence
Demographic Profile of Affluent Consumers
Population of Affluent Consumers Tops 61 Million
Table 4-1: Number of Affluent U.S. Adults, 2009
Gen-Xers and Younger Boomers Predominate
Table 4-2: Affluent Consumers by Gender and Age Group
Affluent Consumers Disproportionately Non-Hispanic White
Table 4-3: Households with Income of $100,000 or More by Race and Hispanic Origin, 2008
Education Differentiates Affluent Consumers
Table 4-4: Affluent Consumers by Educational Achievement
Few Retirees among Affluent Consumer Population
Table 4-5: Employment Profile of Affluent Consumers
Multiple Earners Common in Affluent Households
Table 4-6: Number of Employed Adults in Household, Affluent vs. Other Consumers
Vast Majority of Affluent Consumers Own Homes
Table 4-7: Affluent Consumers by Homeownership Status
Vacation Homes Part of Super-Affluent Lifestyle
Table 4-8: Ownership of Vacation Homes, Affluent vs. Other Consumers
Marriage More Common
Table 4-9: Affluent Consumers by Marital Status
Affluent Households Are Larger
Table 4-10: Affluent Households by Size of Household and Presence of Children
Where Affluent Consumers Live
Northeast Has the Most Super-Affluent
Table 4-11: Affluent Consumers by Region of Residence
Affluent More Likely to Congregate in Urban Centers
Table 4-12: Percent of Affluent Consumers Living in Selected Metro Markets
New York Metro Area Tops List of Affluent Metro Areas
Table 4-13: 40 Largest Metropolitan Areas Ranked by Number of Affluent Households
Silicon Valley and Suburban Connecticut Have Highest Concentration of Affluent Households
Table 4-14: 40 Largest Metropolitan Areas Ranked by Affluent Households as Percent of All Households in Area

Chapter 5 Looking Ahead: The Affluent Consumer Market in 2010 and Beyond
Size of the Affluent Market
Defining the Affluent Market
Number of Affluent Households Tops 25 Million
Table 5-1: Number of Affluent Households by Amount of Household Income, 2008
Table 5-2: Affluent Consumer Segments as Percentage of Affluent Consumer Households
Affluent Generate More than Half of U.S. Household Income
Table 5-3: Aggregate Household Income, Affluent vs. Non-Affluent by Category of Affluent Household, 2008
Super-Affluent Have Super Impact on Affluent Consumer Market
Table 5-4: Aggregate Income of Affluent Households by Category of Affluent Household
Factors Affecting the Growth of the Affluent Market
Optimism Gradually Returning amidst Uncertainty about the Future
Slow Economic Growth Expected in Near Term
Forecasters See Gradual Uptick in Global Luxury Market
American Affluent Consumers Expected to Lose Ground in Global Shift
Projected Growth of the Affluent Consumer Market
Forecasting Assumptions Analyzed
Affluent Consumer Market Will Grow 23% by 2014
Table 5-5: Projected Size and Growth of Affluent Market, 2009-2014

Section II How Affluent Consumers Manage and Spend Money

Chapter 6 How Affluent Consumers Manage Their Money
Key Trends in Attitudes toward Personal Finances
Affluent Lose Appetite for Risk
Table 6-1: Attitudes toward Risk, Affluent vs. Non-Affluent Consumers by Selected Time Periods 2005-2009
Super-Affluent Show Increasing Interest in Getting Financial Information
Table 6-2: Interest in Obtaining Financial Information, Affluent vs. Non-Affluent Consumers by Selected Time Periods 2005-2009
Financial Management Practices
Choice of Banking Institutions Differs across Income Lines
Table 6-3: Percent Owning Bank Accounts by Type of Account and Institution, Affluent vs. Other Consumers
Frequent Credit Card Use a Hallmark of Affluence
Table 6-4: Use of Credit Cards, Affluent vs. Other Consumers
Even Affluent Carry Balances on Credit Cards
Table 6-5: Percent of Credit-Card Holders Paying Off Entire Credit-Card Balance Each Month, Affluent vs. Other Consumers
Debit Cards Used Frequently
Table 6-6: Ownership and Use of ATM/Debit Cards, Affluent vs. Other Consumers
Paying Bills Online Popular among Affluent
Table 6-7: Methods Used to Pay Bills, Affluent vs. Other Consumers
Affluent Taxpayers Look to CPAs
Table 6-8: Methods of Preparing Tax Returns in Last 12 Months, Affluent vs. Other Consumers
Ownership of Investments and Insurance
Investment Ownership Analyzed
Table 6-9: Ownership of Investments, Affluent vs. Other Consumers
Insurance Vital Part of Affluent Lifestyle
Table 6-10: Ownership of Property and Vehicle Insurance, Affluent vs. Other Consumers
Table 6-11: Value of Life Insurance Owned, Affluent vs. Other Consumers
Table 6-12: Percent with Health Insurance by Type Owned, Affluent vs. Other Consumers